CI Volatility: Better Brakes, Better Portfolios
In Formula 1, the cars with the most advanced braking systems are the ones that can accelerate most aggressively.
Amateurs assume brakes slow you down.
Professionals know brakes give you the confidence and capability to drive at full speed.
In portfolio construction, volatility strategies work exactly the same way:
The better and more precise your downside protection, the more capital you can deploy into the opportunities you truly want.
Decades ago, diversifying into bonds provided meaningful downside protection.
Today traditional diversification Protects You Least When You Need it Most.
CI Volatility: Your Formula 1 Brakes
With more robust and predictable downside protection, allocators can increase sizing in their other portfolios around:
high-alpha equities
concentrated stock baskets
private market exposures
growth allocations
illiquid strategies with risky long-term profiles
The point is not to take more risk.
The point is to take the right risks, because the downside is covered.
Allocators can pursue mandates and niches they previously avoided due to risk constraints.
Volatility instruments can deliver asymmetric protection per unit of capital.
A small, well-designed hedge can replace a large allocation to an underperforming equity.
If your current portfolio construction relies on expensive, or ineffective diversification to control drawdowns, CI Volatility offers better brakes.